Podgorica, Montenegro (5 March 2018) — Prime Minister of Montenegro Duško Marković met today with the International Monetary Fund (IMF) Delegation led by the head of the IMF Mission for Montenegro Martin Petri. It was jointly concluded that 2017 was the year of success for the Government of Montenegro in managing economic policy, with a very good chance that the same trend will continue in 2018…

Podgorica, Montenegro (5 March 2018) — Prime Minister of Montenegro Duško Marković met today with the International Monetary Fund (IMF) Delegation led by the head of the IMF Mission for Montenegro Martin Petri. It was jointly concluded that 2017 was the year of success for the Government of Montenegro in managing economic policy, with a very good chance that the same trend will continue in 2018.

The Prime Minister informed his counterparts about the key results of our economic policy last year, reflected in fiscal stability and strong annual economic growth of over 4 percent, and thanked the IMF for the strong support to the Government in the implementation of fiscal consolidation measures in the then very unfavorable political environment.

The trend of strengthening fiscal stability continues this year as well, according to the Prime Minister, who noted that in the first two months, central budget revenues increased by EUR 26.1 million compared to the same period last year.

The Prime Minister said he expects continued growth in investment activity. In this regard, he informed his guests about the fact that the Government adopted the Privatisation Plan for 2018, which should encourage further investments. As he said, in addition to privatisation, the continuation of structural reforms in the areas of state administration, health, education and the labor market should also contribute to the projected annual growth of three percent. The Prime Minister especially emphasised the importance of the fact that the World Bank assessed the Government’s economic policy as credible by granting Montenegro a PBG guarantee in the amount of EUR 80 million, which provides for the refinancing of a part of the public debt up to EUR 250 million under exceptionally favorable conditions.

The head of the IMF Mission in Montenegro welcomed the strengthening of the stability of public finances, stressing that this was recognised in the financial markets, as well as the Government’s intention to continue to implement structural reforms. In this context, he assessed that Montenegro should be focused this year on further tax policy reform, especially in the part of reducing the tax burden on labor, reform of the pension system, public administration reform, as well as support for strengthening the fiscal responsibility of local self-governments. The IMF Delegation also highlighted the role of the state in the economy, and the continuation of reforms in the financial sector, in particular banking, towards its further consolidation, as well as reforms in the labor market, in a way that the new labor law is designed to contribute to the increase in employment.

Thanking the IMF Mission for all the proposals, the Prime Minister stressed the importance of the new momentum in the economy of Montenegro within the framework of wider integration processes and emphasised the Government’s determination to persevere in the reform process, which should contribute to the economic progress of the country, with the support of our international partners.